Apr 28, 2016
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Cardtronics Announces First Quarter 2016 Results

HOUSTON, April 28, 2016 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) ("Cardtronics" or the "Company"), the world's largest ATM owner/operator, today announced its financial and operational results for the quarter ended March 31, 2016.

Key financial statistics in the first quarter of 2016 as compared to the first quarter of 2015 include:

"We had a good start to 2016, with our core ATM operating revenues up approximately 15% on a constant-currency basis for the quarter. We also enjoyed expansion of gross margins — which were up 200 basis points, once again demonstrating the strength and durability of our model and solid execution by our team. We continue to see opportunities for profitable revenue growth in our key markets and are seeing increasing opportunities for expansion into new markets," commented Steve Rathgaber, Cardtronics' chief executive officer.

RECENT HIGHLIGHTS

FIRST QUARTER RESULTS

Consolidated revenues totaled $303.2 million for the first quarter of 2016, representing an 8% increase from $281.9 million in the first quarter of 2015. ATM operating revenues were up 12% from the first quarter of 2015. Adjusting for unfavorable movements in currency exchange rates, ATM operating revenues were up approximately 15% from the first quarter of 2015, driven primarily by organic growth. The $10.7 million decrease in ATM product sales and other revenues in the first quarter was attributable to the Company's 2015 divestiture of the retail cash-in-transit component of its previously acquired Sunwin business in the U.K. Cost of ATM product sales and other revenues decreased correspondingly by $9.4 million in the first quarter.

Adjusted EBITDA for the first quarter of 2016 totaled $73.2 million, representing an 8% increase over the $67.5 million of Adjusted EBITDA during the first quarter of 2015. Adjusted Net Income totaled $31.3 million ($0.68 per diluted share) for the first quarter of 2016, compared to $29.0 million ($0.64 per diluted share) during the first quarter in 2015. The increases in Adjusted EBITDA and Adjusted Net Income were primarily driven by the Company's revenue growth and margin expansion. Adjusted EBITDA and Adjusted Net Income are detailed in a reconciliation included at the end of this press release.

GAAP Net Income for the first quarter of 2016 totaled $15.4 million, compared to GAAP Net Income of $15.2 million during the first quarter in 2015. The increase in GAAP Net Income for the first quarter of 2016 was the result of continued revenue growth and margin expansion, which was mostly offset by nonrecurring professional services costs of approximately $6.0 million during the quarter associated with the Company's planned redomicile of its parent company in the U.K., announced on April 27, 2016. These costs are reported in our results from operations under the redomicile-related expense category and have been excluded from the Company's calculation of Adjusted EBITDA and Adjusted Net Income in the first quarter.

ATM operating revenues in North America were up 7% for the quarter, all of which was accounted for by organic growth. ATM operating revenues in Europe were up 20% for the quarter (27% constant-currency basis), driven by a combination of strong organic growth and to a lesser extent, acquisition-related growth.

2016 GUIDANCE

The Company is updating the financial guidance it provided in February 2016 regarding its anticipated results for the full year 2016:

The Adjusted EBITDA and Adjusted Net Income guidance excludes the impact of certain expenses, as outlined in the reconciliation provided at the end of this press release. Additionally, this guidance is based on average foreign currency exchange rates for the remainder of the year of £1.00 U.K. to $1.40 U.S., $17.50 Mexican pesos to $1.00 U.S., $1.00 Canadian dollar to $0.75 U.S., and €1.00 Euros to $1.10 U.S.

LIQUIDITY

The Company had $315 million in available borrowing capacity under its $375 million revolving credit facility due in 2019 and $25 million in cash on hand as of March 31, 2016. The Company's outstanding indebtedness as of March 31, 2016 consisted of $250 million in senior notes due 2022, $288 million convertible senior notes due 2020, and $60 million in borrowings under its revolving credit facility due 2019. The senior and convertible senior notes have carrying balances of $247 million and $233 million, respectively, and are reflected as long-term debt on the balance sheet, net of issuance costs and unamortized discounts.

CONFERENCE CALL INFORMATION

The Company will host a conference call today, Thursday, April 28, 2016, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its financial results for the first quarter ended March 31, 2016. To access the call, please call the conference call operator at:

Dial in: (877) 303-9205
Alternate dial-in:         (760) 536-5226

Please call in fifteen minutes prior to the scheduled start time and request to be connected to the "Cardtronics First Quarter Earnings Conference Call." Additionally, a live audio webcast of the conference call will be available online through the investor relations section of the Company's website at www.cardtronics.com.

A digital replay of the conference call will be available through Thursday, May 12, 2016, and can be accessed by calling (855) 859-2056 or (404) 537-3406 and entering 86110230 for the conference ID. A replay of the conference call will also be available online through the Company's website subsequent to the call through May 31, 2016.

DISCLOSURE OF NON-GAAP FINANCIAL INFORMATION

Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Revenue on a constant-currency basis are non-GAAP financial measures provided as a complement to results prepared in accordance with U.S. GAAP and may not be comparable to similarly-titled measures reported by other companies. The Company uses these non-GAAP financial measures in managing and measuring the performance of its business, including setting and measuring incentive based compensation for management. Management believes that the presentation of these measures and the identification of unusual, nonrecurring, or non-cash items enhance an investor's understanding of the underlying trends in the Company's business and provide for better comparability between periods in different years.

Adjusted EBITDA excludes depreciation, accretion, and amortization of intangible assets as these amounts can vary substantially from company to company within the Company's industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Adjusted EBITDA also excludes stock-based compensation expense, acquisition and divestiture-related expenses, certain other non-operating and nonrecurring expenses, gains or losses on disposal of assets, the Company's obligations for the payment of income taxes, interest expense and other obligations such as capital expenditures, and includes an adjustment for noncontrolling interests. Adjusted EBITDA % is calculated by taking Adjusted EBITDA over U.S. GAAP total revenues. Adjusted Net Income represents net income computed in accordance with U.S. GAAP, before amortization of intangible assets, gains or losses on disposal of assets, stock-based compensation expense, certain other (income) expense amounts, nonrecurring expenses, and acquisition and divestiture-related expenses, and uses an estimated long-term cash tax rate of 32.0% for the three months ended March 31, 2016 and 2015, with certain adjustments for noncontrolling interests. Adjusted Net Income per diluted share is calculated by dividing Adjusted Net Income by weighted average diluted shares outstanding. Free Cash Flow is defined as cash provided by operating activities less payments for capital expenditures, including those financed through direct debt but excluding acquisitions. The Free Cash Flow measure does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on portions of the Company's long-term debt. Management calculates Revenue on a constant-currency basis by using the average foreign exchange rates applicable in the corresponding period of the previous year and applying these rates to foreign-denominated revenue of the current period. The difference between revenue calculated based on these foreign exchange rates and revenue calculated in accordance with U.S. GAAP is referred to as the foreign exchange impact on revenue. Management uses Revenue on a constant-currency basis to eliminate the effect foreign currency has on comparability between periods.

The non-GAAP financial measures presented herein should not be considered in isolation or as a substitute for operating income, net income, cash flows from operating, investing, or financing activities, or other income or cash flow measures prepared in accordance with U.S. GAAP. Reconciliations of the non-GAAP financial measures used herein to the most directly comparable U.S. GAAP financial measures are presented in tabular form at the end of this press release.

ABOUT CARDTRONICS (NASDAQ:CATM)

Making ATM cash access convenient where people shop, work and live, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics provides services to approximately 195,000 ATMs in North America and Europe. Whether Cardtronics is driving foot traffic for North America and Europe's top retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "project," "believe," "estimate," "expect," "future," "anticipate," "intend," "contemplate," "foresee," "would," "could," "plan," and similar expressions that are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on management's current expectations and beliefs concerning future developments and their potential effect on the Company. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that are anticipated. All comments concerning the Company's expectations for future revenues and operating results are based on the Company's estimates for its existing operations and do not include the potential impact of any future acquisitions. The Company's forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control) and assumptions that could cause actual results to differ materially from the Company's historical experience and present expectations or projections. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include:

Forward-looking statements also are affected by the risk factors described in the Company's Annual Report on Form 10- K for the year ended December 31, 2015, as amended, and those set forth from time-to-time in other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Consolidated Statements of Operations
For the Three Months Ended March 31, 2016 and 2015
(In thousands, excluding share and per share amounts and percentages)
(Unaudited)
           
  Three Months Ended
  March 31,
  2016 % Change 2015
Revenues:          
ATM operating revenues $ 292,088     12.3 % $ 260,023 
ATM product sales and other revenues   11,159     (49.0)    21,878 
Total revenues   303,247     7.6     281,901 
Cost of revenues:          
Cost of ATM operating revenues (excludes depreciation, accretion, and amortization of intangible assets shown separately below.)   185,940     10.3     168,508 
Cost of ATM product sales and other revenues   9,933     (48.5)    19,292 
Total cost of revenues   195,873     4.3     187,800 
Gross profit   107,374     14.1     94,101 
Gross profit %   35.4%       33.4%
Operating expenses:          
Selling, general, and administrative expenses   37,399     21.1     30,880 
Redomicile-related expense   6,036    n/m      
Acquisition and divestiture-related expenses   1,584     (32.8)    2,358 
Depreciation and accretion expense   22,677     12.8     20,112 
Amortization of intangible assets   9,263     (2.5)    9,497 
Loss (gain) on disposal of assets   382    n/m     (533)
Total operating expenses   77,341     24.1     62,314 
Income from operations   30,033     (5.5)    31,787 
Other expense:          
Interest expense, net   4,492     (4.6)    4,710 
Amortization of deferred financing costs and note discount   2,782     0.1     2,779 
Other (income) expense   (555)   n/m     1,060 
Total other expense   6,719     (21.4)    8,549 
Income before income taxes   23,314     0.3     23,238 
Income tax expense   7,955     (6.0)    8,464 
Net income   15,359     4.0     14,774 
Net loss attributable to noncontrolling interests   (25)   n/m     (459)
Net income attributable to controlling interests and available to common stockholders $ 15,384     1.0 % $ 15,233 
           
Net income per common share — basic $ 0.34      $ 0.34 
Net income per common share — diluted $ 0.34      $ 0.34 
           
Weighted average shares outstanding — basic   45,073,654        44,667,248 
Weighted average shares outstanding — diluted   45,703,488        45,265,601 


Condensed Consolidated Balance Sheets
As of March 31, 2016 and December 31, 2015
(In thousands)
       
  March 31, 2016 December 31, 2015
  (Unaudited)   
ASSETS      
Current assets:      
Cash and cash equivalents $25,049 $26,297
Accounts and notes receivable, net  73,924  72,009
Inventory, net  9,652  10,675
Restricted cash  28,591  31,565
Current portion of deferred tax asset, net    16,300
Prepaid expenses, deferred costs, and other current assets  57,740  56,678
Total current assets  194,956  213,524
Property and equipment, net  369,032  375,488
Intangible assets, net  140,508  150,780
Goodwill  546,392  548,936
Deferred tax asset, net  13,299  11,950
Prepaid expenses, deferred costs, and other noncurrent assets  22,989  19,257
Total assets $1,287,176 $1,319,935
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Current portion of other long-term liabilities $32,194 $32,732
Accounts payable and other accrued and current liabilities  244,213  244,908
Total current liabilities  276,407  277,640
Long-term liabilities:      
Long-term debt  540,314  568,331
Asset retirement obligations  52,009  51,685
Deferred tax liability, net  3,693  21,829
Other long-term liabilities  46,519  30,657
Total liabilities  918,942  950,142
Stockholders' equity  368,234  369,793
Total liabilities and stockholders' equity $1,287,176 $1,319,935


SELECTED INCOME STATEMENT DETAIL:

          
Total revenues by segment:Three Months Ended
 March 31,
 2016 % Change 2015
 (In thousands, excluding percentages)
North America$  210,092    7.0% $  196,277 
Europe   87,980    2.3     85,966 
Corporate & Other   11,138   n/m     4,801 
Eliminations   (5,963)   15.9     (5,143)
Total revenues$  303,247    7.6% $  281,901 


          
Total gross profit by segment:Three Months Ended
 March 31,
 2016 % Change 2015
 (In thousands, excluding percentages)
North America$ 73,954   6.1% $ 69,701
Europe  30,115   25.8    23,937
Corporate & Other  3,305  n/m    463
Total gross profit$ 107,374   14.1% $ 94,101


          
Breakout of ATM operating revenues:Three Months Ended
 March 31,
 2016 % Change 2015
 (In thousands, excluding percentages)
Surcharge revenues$ 116,846   5.8% $ 110,433
Interchange revenues  107,030   15.5    92,658
Bank-branding and surcharge-free network revenues  47,209   12.7    41,884
Managed services revenues  8,839   4.9    8,428
Other revenues  12,164   83.7    6,620
Total ATM operating revenues$ 292,088   12.3% $ 260,023


          
Breakout of cost of ATM operating revenues (exclusive ofThree Months Ended
depreciation, accretion, and amortization of intangible assets):March 31,
 2016 % Change 2015
 (In thousands, excluding percentages)
Merchant commissions$88,395    11.4 % $79,349
Vault cash rental 17,273    3.0    16,775
Other costs of cash 20,269    11.8    18,124
Repairs and maintenance 17,303    (1.1)   17,499
Communications 7,612    5.1    7,240
Transaction processing 3,602    (7.9)   3,911
Stock-based compensation 117    (65.2)   336
Employee costs 17,606    54.0    11,429
Other expenses 13,763    (0.6)   13,845
Total cost of ATM operating revenues$185,940    10.3 % $168,508


          
Breakout of selling, general, and administrative expenses:Three Months Ended
 March 31,
 2016 % Change 2015
 (In thousands, excluding percentages)
Employee costs$20,665    20.9 % $17,093
Stock-based compensation 3,051    (21.1)   3,867
Professional fees 5,714    113.2    2,680
Other expenses 7,969    10.1    7,240
Total selling, general, and administrative expenses$37,399    21.1 % $30,880


          
Depreciation and accretion by segment:Three Months Ended
 March 31,
 2016 % Change 2015
 (In thousands, excluding percentages)
North America$ 11,996    (0.9)% $ 12,101
Europe  9,096    13.5     8,011
Corporate & Other  1,585   n/m     —
Total depreciation and accretion expense$ 22,677    12.8 % $ 20,112


SELECTED BALANCE SHEET DETAIL:

      
Long-term debtMarch 31, 2016 December 31, 2015
 (In thousands)
Revolving credit facility$ 60,149 $ 90,835
5.125% Senior notes (1)  246,887   246,742
1.00% Convertible senior notes (1)  233,278   230,754
Total long-term debt$ 540,314 $ 568,331

(1) Our 5.125% senior notes due 2022 with a face value of $250.0 million are presented net of capitalized debt issuance costs of $3.1 million and $3.3 million as of March 31, 2016 and December 31, 2015, respectively. Our 1.00% convertible senior notes due 2020 with a face value of $287.5 million are presented net of the unamortized discount and capitalized debt issuance costs of $54.2 million and $56.7 million as of March 31, 2016 and December 31, 2015, respectively. In accordance with U.S. GAAP the estimated fair value of the conversion feature within the convertible senior notes was recorded as additional paid-in capital within equity at issuance. The convertible senior notes are being accreted over the term of the notes to the full principal amount ($287.5 million).

Share count rollforward:

Total shares outstanding as of December 31, 2015   44,953,620 
Shares repurchased   (125,621)
Shares issued — stock options exercised   12,610 
Shares vested — restricted stock units   379,695 
Total shares outstanding as of March 31, 2016   45,220,304 

SELECTED CASH FLOW DETAIL:

Selected cash flow statement amounts:

       
  Three Months Ended
  March 31,
  2016 2015
  (In thousands)
Cash provided by operating activities $  44,654  $  30,872 
Cash used in investing activities    (11,756)    (39,812)
Cash used in financing activities    (34,041)    (3,769)
Effect of exchange rate changes on cash    (105)    (1,971)
Net decrease in cash and cash equivalents    (1,248)    (14,680)
Cash and cash equivalents as of beginning of period    26,297     31,875 
Cash and cash equivalents as of end of period $  25,049  $  17,195 


Key Operating Metrics — Including Acquisitions in All Periods Presented 
For Three Months Ended March 31, 2016 and 2015 
(Unaudited) 
         
 Three Months Ended  
 March 31,  
 2016   2015 
Average number of transacting ATMs:        
United States: Company-owned  39,295     38,055 
United Kingdom  15,808     13,731 
Mexico  1,391     1,746 
Canada  1,853     1,574 
Germany and Poland  1,127     927 
Subtotal  59,474     56,033 
United States: Merchant-owned (1)  17,455     21,002 
Average number of transacting ATMs — ATM operations  76,929     77,035 
         
Managed Services and Processing        
United States: Managed services — Turnkey  2,204     2,168 
United States: Managed services — Processing Plus and Processing operations, net (2)  110,925     30,432 
Canada: Managed services  1,524     920 
Average number of transacting ATMs — Managed services and processing  114,653     33,520 
         
Total average number of transacting ATMs  191,582     110,555 
         
Total transactions (in thousands):        
ATM operations  313,131     278,358 
Managed services and processing, net (2)  170,879     33,270 
Total transactions  484,010     311,628 
         
Cash withdrawal transactions (in thousands):        
ATM operations  192,086     169,469 
         
Per ATM per month amounts (excludes managed services and processing):   % Change    
Cash withdrawal transactions  832  13.5%   733 
         
ATM operating revenues$ 1,216  10.1% $ 1,104 
Cost of ATM operating revenues (3)  790  9.1%   724 
ATM operating gross profit (3) (4)$ 426  12.1% $ 380 
         
ATM operating gross profit margin (3) (4)  35.0%    34.4%

(1) Certain ATMs previously reported in this category are now included in the United States: Managed services - Processing Plus and Processing operations, net category below.
(2) The notable increase in the United States: Managed services - Processing Plus and Processing operations, net category is mostly attributable to the July 1, 2015 acquisition of Columbus Data Services, L.L.C. (" CDS") and the incremental number of transacting ATMs for which CDS provides processing services.
(3) Amounts presented exclude the effect of depreciation, accretion, and amortization of intangible assets, which is presented separately in the Company's Consolidated Statements of Operations.
(4) Revenues and expenses relating to managed services, processing, ATM equipment sales, and other ATM-related services are not included in this calculation.

 
Key Operating Metrics — Ending Machine Count
As of March 31, 2016 and 2015
(Unaudited)
     
  As of March 31,
  2016 2015
Ending number of transacting ATMs:    
United States: Company-owned 40,088 38,257
United Kingdom 15,928 14,630
Mexico 1,380 1,444
Canada 1,862 1,600
Germany and Poland 1,130 953
Total Company-owned 60,388 56,884
United States: Merchant-owned 16,828 20,276
Ending number of transacting ATMs: ATM operations 77,216 77,160
     
United States: Managed services — Turnkey 2,225 2,180
United States: Managed services — Processing Plus and Processing operations, net 113,786 31,171
Canada: Managed services 1,648 950
Ending number of transacting ATMs: Managed services and processing, net 117,659 34,301
     
Total ending number of transacting ATMs 194,875 111,461


Reconciliation of Net Income Attributable to Controlling Interest and Available to Common Stockholders to
EBITDA, Adjusted EBITDA, and Adjusted Net Income
For the Three Months Ended March 31, 2016 and 2015
(Unaudited)
  Three Months Ended
  March 31,
  2016 2015
Net income attributable to controlling interests and available to common stockholders $  15,384  $  15,233 
Adjustments:      
Interest expense, net   4,492    4,710 
Amortization of deferred financing costs and note discount   2,782    2,779 
Income tax expense   7,955    8,464 
Depreciation and accretion expense   22,677    20,112 
Amortization of intangible assets   9,263    9,497 
EBITDA  $  62,553  $  60,795 
       
Add back:      
Loss (gain) on disposal of assets   382    (533)
Other (income) expense   (555)   1,060 
Noncontrolling interests (1)   (18)   (425)
Stock-based compensation expense (2)   3,168    4,197 
Acquisition and divestiture-related expenses (3)   1,584    2,358 
Redomicile-related expense (4)   6,036     
Adjusted EBITDA $  73,150  $  67,452 
Less:      
Interest expense, net (2)   4,492    4,707 
Depreciation and accretion expense (5)   22,669    20,055 
Adjusted pre-tax income $ 45,989  $ 42,690 
Income tax expense (6)   14,716    13,660 
Adjusted Net Income $  31,273  $  29,030 
       
Adjusted Net Income per share $  0.69  $  0.65 
Adjusted Net Income per diluted share $  0.68  $  0.64 
       
Weighted average shares outstanding — basic   45,073,654    44,667,248 
Weighted average shares outstanding — diluted   45,703,488    45,265,601 

(1) Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company's ownership interest in the Adjusted EBITDA of its Mexico subsidiary. In December 2015, the Company increased its ownership interest in its Mexico subsidiary from 51.0% to 95.7%.
(2) For the three months ended March 31, 2015, amounts exclude a portion of the expenses incurred by the Company's Mexico subsidiary to account for the amounts allocable to the noncontrolling interest stockholders.
(3) Acquisition and divestiture-related expenses include nonrecurring costs incurred for professional and legal fees and certain transition and integration-related costs, including employee-related severance costs.
(4) For the three months ended March 31, 2016, the Company incurred $6.0 million in expenses associated with its plan to redomicile to the U.K.
(5) Amounts exclude a portion of the expenses incurred by the Company's Mexico subsidiary to account for the amounts allocable to the noncontrolling interest stockholders. In December 2015, the Company increased its ownership interest in its Mexico subsidiary.
(6) Calculated using the Company's estimated long-term, cross-jurisdictional effective cash tax rate of 32.0%.

 
Reconciliation of Free Cash Flow
For the Three Months Ended March 31, 2016 and 2015
(Unaudited)
       
  Three Months Ended
  March 31,
  2016 2015
  (In thousands)
Cash provided by operating activities $  44,654  $  30,872 
Payments for capital expenditures:      
Cash used in investing activities, excluding acquisitions and divestitures    (16,451)    (31,678)
Free cash flow $  28,203  $  (806)


Reconciliation of Estimated Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income
For the Year Ending December 31, 2016
(In millions, excluding share and per share amounts)
(Unaudited)
       
  Estimated Range
Full Year 2016
Net Income $85.0 $88.5
Adjustments:      
Interest expense, net  18.5  18.0
Amortization of deferred financing costs and note discount  11.5  11.5
Income tax expense  40.0  42.0
Depreciation and accretion expense (1)  94.0  96.0
Amortization of intangible assets  40.0  40.0
EBITDA $289.0 $296.0
       
Add Back:      
Stock-based compensation expense  18.0  18.0
Redomicile-related expense  10.0  11.0
Acquisition and divestiture-related costs  2.0  2.0
Loss on disposal of assets  1.0  1.0
Adjusted EBITDA $320.0 $328.0
Less:      
Interest expense, net  18.5  18.0
Depreciation and accretion expense  94.0  96.0
Income tax expense (2)  66.4  68.5
Adjusted Net Income $141.1 $145.5
       
Adjusted Net Income per diluted share $3.08 $3.18
       
Weighted average shares outstanding - diluted  45.8  45.8

(1) Noncontrolling interests adjustment made such that Adjusted EBITDA includes only the Company's interest of its Mexico subsidiary.
(2) Calculated using the Company's estimated long-term, cross-jurisdictional effective cash tax rate of 32.0%.

Contact Information:

Media RelationsInvestor Relations
Nick PappathopoulosPhillip Chin
Director — Public RelationsEVP Corporate Development & Investor Relations
832-308-4396832-308-4975
npappathopoulos@cardtronics.com     ir@cardtronics.com

Cardtronics is a registered trademark of Cardtronics, Inc.
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